ZAGREB, March 2 (Hina) - The Croatian association of hotel and restaurant owners (HUH) unequivocally supported the existence of the Tourism Ministry, the HUH Presidency said in a statement issued after its session on 25 February in
Novi Vinodolski. Hoteliers reiterated the fact that the state policy had given a strategic importance to tourism in the entire development of Croatia's economy. The HUH presidency expressed the support to the continuance of the Ministry of Tourism after some speculations recently occurred that this ministry may be abolished during the announced reconstruction of the Government. At the Novi Vinodolski session, the HUH presidency discussed the results of a poll conducted on a representative sample of 44 biggest hotel firms about effects of the Value Added Tax in this business. According to the poll, the high 22 percent rate of VAT badly affected financial transa
ZAGREB, March 2 (Hina) - The Croatian association of hotel and
restaurant owners (HUH) unequivocally supported the existence of
the Tourism Ministry, the HUH Presidency said in a statement issued
after its session on 25 February in Novi Vinodolski.
Hoteliers reiterated the fact that the state policy had given a
strategic importance to tourism in the entire development of
Croatia's economy.
The HUH presidency expressed the support to the continuance of the
Ministry of Tourism after some speculations recently occurred that
this ministry may be abolished during the announced reconstruction
of the Government.
At the Novi Vinodolski session, the HUH presidency discussed the
results of a poll conducted on a representative sample of 44 biggest
hotel firms about effects of the Value Added Tax in this business.
According to the poll, the high 22 percent rate of VAT badly
affected financial transactions of hotels in 1998. A considerable
number of hotels are faced with blocked accounts, and many cope with
problems of fulfilling repayment obligations toward the State or
suppliers and paying salaries to employees.
The HUH presidency considered the programme of preparations for the
1999 tourist season.
Hoteliers assessed that good measures had been defined for the
season, but they were dissatisfied with the implementation of the
programme. They complained about delays in the final preparations
due to undetermined criteria for the subsidies to be given to
hoteliers, a failure of the Croatian Bank for the Reconstruction
and Development (HBOR) to grant loans for preparations for the
tourist season, the unenviable financial situation of some hotels
and problems in the relocation of displaced persons and refugees
from hotel facilities in order to adjust them to the commercial
functions.
Hoteliers will call on Ministries of Tourism and Finance to make
additional efforts to overcome promptly above-mentioned
problems.
(hina) ms